Software business targeting US

Software developer Ideagen is eyeing the US as it targets further acquisitions, after revealing sharply rising interim revenue and profit.

The Aim-quoted business, with a sizeable presence in East Kilbride, reported a 43 per cent year-on-year jump in revenue for the six months to 31 October to £17.2 million. Pre-tax profit grew 56 per cent to £4.1m and the dividend rises 15 per cent to 0.078p.

The business specialises in governance, risk and compliance, with more than 3,000 customers including most top UK accounting firms, BAE Systems, Emirates airline, Shell and the European Central Bank as well as 150 UK and US hospitals.

Ideagen’s chief customer officer Ben Dorks told The Scotsman that the company, which is moving to the cloud software environment, is one of few tech companies “that are actually profitable”.

Dorks also flagged 70 per cent of new customer wins in the half-year coming from outside the UK, including the US Navy as part of strong momentum in sales in the US, Europe and Asia-pacific regions.

Ideagen’s headcount has just exceeded 400, with most in the UK, including its other major office in Nottingham. Staff at its East Kilbride site number about 130, with that total having grown 30 per cent in the past two years.

Dorks said Ideagen’s strategy is to acquire firms, including Scottish software group Gael in 2015. “We look at 10 per cent organic growth in the businesses that we acquire, and our long-term goal is to very much be one of the fastestgrowth technology companies in the UK with a global presence.

“We are looking to continue acquisitions… to grow our US footprint, and we would see that as a key opportunity.”